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Angel Oak Mortgage (AOMR)
NYSE:AOMR
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Angel Oak Mortgage
(NYSE:AOMR)
67Neutral
Positive Factors
Financial Performance
NII continues to increase and was up 2% q/q and 18% y/y.
Investment Pipeline
Management sees a healthy new investment pipeline for non-QM loan acquisitions.
Market Position
AOMR is attractively positioned as a leader in the non-QM space, which is expected to experience exponential growth over the next several years.
Negative Factors
Earnings Miss
Distributable EPS of $0.17, below the estimate of $0.27 on realized losses on hedges.
Valuation Concerns
Valuation depressed as shareholder base transitions.
Angel Oak Mortgage (AOMR) vs. S&P 500 (SPY)
Market Cap
$237.35M
Dividend Yield12.67%
Average Volume (3M)123.70K
Price to Earnings (P/E)6.7
Beta (1Y)0.50
Revenue Growth54.49%
EPS Growth-17.44%
CountryUS
Employees300
SectorReal Estate
Sector Strength83
IndustryREIT - Mortgage
Share Statistics
EPS (TTM)0.18
Shares Outstanding23,500,175
10 Day Avg. Volume122,574
30 Day Avg. Volume123,702
Financial Highlights & Ratios
PEG Ratio0.21
Price to Book (P/B)0.94
Price to Sales (P/S)0.00
P/FCF Ratio-1.07
Enterprise Value/Market Cap2.56
Enterprise Value/Revenue2.10
Enterprise Value/Gross Profit13.87
Enterprise Value/Ebitda2.08
Forecast
1Y Price Target
$12.17Price Target Upside20.50% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Angel Oak Mortgage Business Overview & Revenue Model
Company DescriptionAngel Oak Mortgage, Inc. (AOMR) is a real estate finance company focused on acquiring and investing in first lien non-QM (non-qualified mortgage) loans and other mortgage-related assets in the U.S. market. Operating within the financial services and real estate sectors, the company specializes in providing access to capital for underserved borrowers who do not fit traditional agency standards, thereby addressing a niche segment of the housing finance market.
How the Company Makes MoneyAngel Oak Mortgage generates revenue primarily through the interest income earned on its portfolio of non-QM loans and other mortgage-related assets. The company acquires these loans typically at a discount, allowing it to profit from the spread between the acquisition cost and the interest income received. Additionally, AOMR might engage in securitization, where they pool these loans and sell them as mortgage-backed securities to investors, earning fees and potentially retaining some interest in the securitized assets. Strategic partnerships with mortgage originators and financial institutions enhance its acquisition pipeline and investment opportunities, contributing significantly to its earnings.
Angel Oak Mortgage Financial Statement Overview
Summary
Angel Oak Mortgage's financial statements show a mixed picture. There is significant volatility in revenue with recent zero revenue in 2024 despite past recoveries. The high debt-to-equity ratio poses a risk, and negative cash flows indicate liquidity challenges. However, improved net profit margins and reasonable liquidity provide some positive aspects.Income Statement
Angel Oak Mortgage's income statement shows significant volatility. The company experienced negative revenue growth in 2022 followed by a sharp recovery in 2023, but then zero revenue in 2024, indicating instability in revenue generation. The net profit margin improved in 2024, which is a positive sign, but overall, the margins have been inconsistent over the years.42
Neutral
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, indicating potential risk due to substantial leverage. Equity has decreased over time, reducing the equity ratio. However, the company has maintained a reasonable level of cash and short-term investments, which provides some liquidity cushion.45
Neutral
Cash Flow
Angel Oak Mortgage's cash flow statement exhibits significant negative operating and free cash flows in recent years, reflecting potential liquidity challenges. The operating cash flow to net income ratio is negative, showing inefficiencies in converting income into cash. Despite past positive free cash flow, recent trends are concerning.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 51.46M | 54.86M | -157.95M | 41.76M | 10.38M | Gross Profit |
| 51.46M | 42.49M | -162.42M | 36.38M | 2.48M | EBIT |
| 45.45M | 34.96M | -128.27M | 22.71M | 736.00K | EBITDA |
| 105.51M | 102.01M | -128.27M | 34.19M | 8.23M | Net Income Common Stockholders |
| 28.75M | 33.71M | -187.83M | 21.11M | 736.00K |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 40.76M | 41.63M | 29.27M | 40.80M | 43.57M | Total Assets |
| 2.27B | 2.31B | 2.95B | 2.58B | 509.66M | Total Debt |
| 1.77B | 1.65B | 1.64B | 1.47B | 81.91M | Net Debt |
| 1.73B | 1.42B | 1.61B | 1.43B | 38.34M | Total Liabilities |
| 2.03B | 2.05B | 2.71B | 2.09B | 261.35M | Stockholders Equity |
| 238.97M | 256.11M | 236.48M | 491.39M | 248.31M |
| Cash Flow | Free Cash Flow | |||
| -221.43M | 306.40M | -331.13M | -1.57B | 34.41M | Operating Cash Flow |
| -221.43M | 306.40M | -331.13M | -1.57B | 34.41M | Investing Cash Flow |
| 120.84M | -194.11M | 664.33M | -460.48M | -52.44M | Financing Cash Flow |
| 98.99M | -107.66M | -345.65M | 2.03B | 54.80M |
Angel Oak Mortgage Technical Analysis
Positive
10.10
Price Trends
9.16
Positive
9.39
Positive
9.58
Positive
Market Momentum
0.34
Negative
71.73
Negative
96.97
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOMR, the sentiment is Positive. The current price of 10.1 is above the 20-day moving average (MA) of 9.00, above the 50-day MA of 9.16, and above the 200-day MA of 9.58, indicating a bullish trend. The MACD of 0.34 indicates Negative momentum. The RSI at 71.73 is Negative, neither overbought nor oversold. The STOCH value of 96.97 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOMR.
Angel Oak Mortgage Risk Analysis
Angel Oak Mortgage disclosed 112 risk factors in its most recent earnings report. Angel Oak Mortgage reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Angel Oak Mortgage Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $237.35M | 6.72 | 14.14% | 12.67% | 54.49% | -17.44% | |
67 Neutral | $202.69M | 7.69 | 8.55% | 11.27% | 36.70% | -48.88% | |
66 Neutral | $172.76M | 10.09 | 6.27% | 12.08% | -11.97% | -27.40% | |
61 Neutral | $253.18M | 7.11 | 19.06% | 13.94% | 11.78% | 65.73% | |
60 Neutral | $2.81B | 11.05 | 0.20% | 8508.34% | 6.12% | -16.02% | |
52 Neutral | $201.69M | 19.23 | 3.99% | 17.88% | 440.31% | 21.03% | |
48 Neutral | $266.23M | ― | -2.33% | 18.59% | -52.08% | 10.36% |
* Real Estate Sector Average
Performance Comparison
AOMR
Angel Oak Mortgage
10.16
-0.30
-2.87%
ACRE
Ares Commercial
4.94
-0.86
-14.83%
MITT
AG Mortgage
6.83
0.70
11.42%
EARN
Ellington Residential Mortgage
5.50
-0.67
-10.86%
NREF
NexPoint Real Estate ate Finance
14.35
2.54
21.51%
SEVN
Seven Hills Realty Trust
11.66
0.24
2.10%
Angel Oak Mortgage Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 5.76%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance with significant growth in net interest income and reduced operating expenses. Strategic securitizations were executed successfully, contributing to increased book value. Despite some challenges such as increased loan delinquencies and market volatility impacting securitization yields, the overall outlook remains positive due to effective capital management and strategic growth initiatives.Q1-2025 Updates
Positive Updates
Net Interest Income Growth
Net interest income saw an 18% growth compared to the first quarter of 2024 and over 2% growth compared to the fourth quarter of 2024.
Operating Expense Reduction
Operating expenses (excluding certain costs) were reduced by 29% compared to the first quarter of 2024 and 10% compared to the fourth quarter of 2024.
Successful Securitization Post-Quarter
Completed the AOMT 2025-4 securitization shortly after quarter-end, contributing $284.3 million in loans, which paid down $242.4 million of warehouse debt and released $24.7 million of cash.
Book Value Increase
GAAP book value increased by 5.2% to $10.70 as of March 31, 2025, from $10.17 as of December 31, 2024.
Loan Portfolio Performance
First quarter loan purchases totaled $259 million with a weighted average coupon of 7.67%, demonstrating strong origination capabilities.
Negative Updates
Unrealized Gains vs. Distributable Earnings
GAAP net income was $20.5 million, while distributable earnings were only $4.1 million, highlighting the difference driven by unrealized gains.
Increased Loan Delinquencies
Portfolio weighted average of loans 90-plus days delinquent was 2.79%, an increase of 35 basis points from the first quarter of 2024.
Market Volatility Impact on Securitization
Volatility affected the spreads on securitizations, resulting in a slightly lower yield on the AOMT 2025-4 securitization compared to expectations.
Company Guidance
During the first quarter of 2025, Angel Oak Mortgage REIT reported significant financial performance metrics, including an 18% growth in net interest income compared to the first quarter of 2024, and a 2% increase from the previous quarter. Operating expenses, excluding certain costs, were $1.1 million, marking a 29% decrease from the same period last year. The company achieved a GAAP net income of $20.5 million or $0.87 per diluted share, and distributable earnings of $4.1 million or $0.17 per share. Interest income was reported at $32.9 million, with a 30% year-over-year improvement. The company completed a securitization after the quarter's end, contributing $284.3 million in loans with a weighted average coupon of 7.5%. The securitization helped lower the recourse debt-to-equity ratio to approximately 1.3 times. The book value per share increased by 5.2% to $10.70, with economic book value rising to $13.41 per share. The company declared a $0.32 per share dividend, reflecting ongoing growth in its earnings power and strategic capital deployment.Angel Oak Mortgage Corporate Events
Financial Disclosures
Angel Oak Mortgage to Announce Q1 2025 Results
Neutral
Apr 22, 2025
On April 21, 2025, Angel Oak Mortgage REIT, Inc. announced the release of its first quarter 2025 financial results, scheduled for May 5, 2025, before the market opens. The company will hold a conference call on the same day at 8:30 a.m. Eastern Time to discuss the results, with a webcast available on its website. This announcement is part of the company’s ongoing efforts to keep stakeholders informed about its financial performance and strategic direction.
Spark’s Take on AOMR Stock
According to Spark, TipRanks’ AI Analyst, AOMR is a Neutral.
Angel Oak Mortgage’s overall score is driven by financial instability and bearish technical indicators, tempered by a strong dividend yield and strategic partnership. While valuation appears favorable, significant financial and operational risks remain.
To see Spark’s full report on AOMR stock, click here.
M&A TransactionsBusiness Operations and Strategy
Angel Oak Mortgage Partners with Brookfield Asset Management
Positive
Apr 1, 2025
On April 1, 2025, Angel Oak Companies announced a strategic partnership with Brookfield Asset Management, where Brookfield will acquire a majority stake in Angel Oak. This partnership is expected to enhance Angel Oak’s growth and innovation in residential mortgage credit, while allowing Brookfield to expand its credit offerings. The transaction is anticipated to close by September 30, 2025, subject to certain conditions, and is not expected to alter Angel Oak’s day-to-day management. This collaboration aligns with Brookfield’s strategy to partner with top credit managers and is seen as a validation of Angel Oak’s successful business model.
Financial Disclosures
Angel Oak Mortgage to Announce 2024 Financial Results
Neutral
Feb 18, 2025
On February 18, 2025, Angel Oak Mortgage REIT, Inc. announced it will release its fourth quarter and full year 2024 financial results on March 4, 2025, before the market opens. The company will hold a conference call at 8:30 a.m. Eastern Time on the same day to discuss these results. This announcement may impact stakeholders by providing insights into the company’s financial performance and strategic positioning in the non-QM loans market.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.